Understanding the Lexicon of Entrepreneurship: Key Terms and Jargon – Part 1 of 3

 Dive into the dynamic lexicon of entrepreneurship in this episode, where we decode the jargon and buzzwords that every founder needs to know.

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Welcome to the "LET'S GET ENTREPRENEURIAL" podcast, your go-to resource for navigating the world of entrepreneurship.

"LET'S GET ENTREPRENEURIAL" podcast addresses essential concepts and strategies that are valuable for the launch and growth of entrepreneurial ventures.

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Professor Gary Palin is an entrepreneur and senior lecturer of entrepreneurship with a combination of 40+ years experience in academic & entrepreneurial settings.

Serial entrepreneur Ryan Budden has participated in all aspects of business as a founding team member in five startups.

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Finance Definitions:

Return on Investment (ROI): A performance measure used to evaluate the efficiency of an investment.

Venture Capital: Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Angel Investor: An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Bootstrapping: Starting a business without external capital or investment, relying solely on personal finances and initial sales revenue.

Seed Capital: The initial capital used to start a business.

Burn Rate: The rate at which a new company spends its venture capital to finance overhead before generating positive cash flow from operations.

Crowdfunding: The practice of funding a project or venture by raising money from a large number of people, typically via the internet.

Equity Financing: The process of raising capital through the sale of shares.

Cash Flow Positive: When a company's cash inflows exceed its cash outflows.

Cap Table: A spreadsheet or table that shows the ownership structure of a company, including shares held by equity owners, investors, and shareholders.

IPO (Initial Public Offering): The first sale of stock by a company to the public.

Market Capitalization: The total dollar market value of a company's outstanding shares.

Deal Flow: The rate at which investment offers or business proposals are received by investors or venture capitalists.

Debt Financing: Raising capital by borrowing money that must be repaid over time, with interest.

Down Round: A financing round where investors purchase stock or shares of a company at a lower valuation than earlier financing rounds.

Due Diligence: An investigation or audit of a potential investment or product to confirm all facts.

Hockey Stick Growth: A growth pattern characterized by a long period of slow growth followed by a sharp increase in growth.

Mezzanine Financing: A mix of debt and equity financing that gives the lender the right to convert to an equity interest in the company in case of default.

Pre-Money Valuation: The valuation of a company or asset prior to an investment or financing.

Runway: The amount of time until a startup goes out of business, assuming current income and expenses stay constant.

Unicorn: A startup company valued at over $1 billion.